mark: to down to the wire. three days before the general election. it is heating up. the new titans on greece said imf payments are undecided on key issue. and striking a deal. silvio berlusconi, a stake in milan to a thai investor. mark: welcome to "the pulse."

you are with me, mark barton for today. the bank holiday show. breaking good news. manufacturing data for the eurozone for the month of april the final estimate in a is slightly above the previous estimate 52. their earlier was 51.9. a slight improvement from the previous estimate from 52 versus 51.9. let's see have a euro has responded to that six weeks of gains out of seven against the u.s. dollar. slight decline. download 0.3%. march 13, the euro lower. it seemed only a few days before the euro might touch parity. it never happened. the euro is moving into the opposite direction. six weeks of gains against the

dollar and the last seven. three days to go on the general election in the u.k. and the polls are putting labour and the conservatives net internet. no group expected to win a majority. and the conservatives are neck and neck. joining us is svenja o'donnell. talk us through some other permutations of what we heard about over the weekend. svenja o'donnell: if you managed to go to the coverage -- get through the coverage of the royal baby the labour monolith. ed miliband pledged to set in stone literally his manifesto commitment. mark: it seems he has been mocked because he has been likened to moses, was this was it a shrewd move so close or

will it be perceived as a faux pas? svenja o'donnell: it is opening go there's opening up on twitter as parting the red sea. -- opening up on twitter as parting the red sea. we wait for the next cap and maybe a liberal democrats. it has gone from the sublime to the ridiculous. we can expect more of the kind. mark: on downing street. if he becomes prime minister. you mentioned a liberal democrats and the possibility of a tattoo. how a parting are the -- how important are the lib dems> svenja o'donnell: i expect them to lose a number of their seats. there will be key players.

we are rumors they are planning to discuss things with the conservatives and the other -- early hours of the vote. that the do so with the labour ed miliband seems to be showing he would rather go at it alone. we could see them lose a lot of seats but every little bit counts. we heard nick clegg say things like ed referendums are not a red line. which means they are open to any negotiations. mark: you are in scotland and you spoke to danny alexander and he told you about the importance of keeping the u.k. united. let's take a listen and i will ask you. danny alexander: i believe we should be united. help keep the u.k. together. but i also think the polls are overstating the likeness of nsp. liberal democrats have a great

track record of savor -- serving the communities worship commitment and we can get rings done a you will see many more liberal democrats, including myself. the snp wants to break up the united kingdom. we need to get away from that. one has been saying he is telling his local members he see this election as a step toward independence. trying to shape things from the sideline and push. [indiscernible] to make sure we keep the snp out. we want deal with the snp in terms of coalitions. they want to do something where

we want to do the exact opposite. they want to break up the united kingdom. and a sense the choice people are facing,, who do you want holding the balance? the snp? cuba minority government -- keep a minority government? or the liberal democrats that show you we can keep the country on a stronger ground. does what you will get with the liberal democrats. mark: danny alexander, what the lib dems have achieved brady he may not be in parliament after thursday. svenja o'donnell: absolutely pretty as part of the liberal democrat coalition. he is expected to lose his seat. he was one of the main architects of the campaigns which result in a no vote in scotland last year. the irony is membership has

quadrupled. mark: thanks a lot. svenja o'donnell chatting about the election. more how the polls are looking. we are joined by joel twyman head of political research. hello. thank you for joining us. 34% for the tories. 33% to labour. when is the breakout going to happen? surge for the incumbents, is that it gone? joe: a question we have been asking. instead, what we have been wondering is what will happen to u.k. voters who have come over to the party and the last few months. what will happen to the snp and

the lib dems will they built a hold on seats? in many ways unclear as they were at the start. the polls have not changed. mark: why haven't the polls change when cameron's leadership rating is far superior than ed miliband's and the strength of the economy as surely the conservative party should be benefiting from those factors, why not? joe: it is never the case that a party has come from behind on leadership or economy is this country. if we look at leadership ratings, david cameron has been hit. only a small amounts is the beginning of the year. 40% of people thought he was doing a good job in january and

46% now. ed miliband went from 18% to 35% increase. he has closed the gap. he has been on relative terms of the winner in terms of personality. the conservatives are seen as doing better but they have an achilles heels which is fairness. a trust between fairness and inequality. a majority of people lady does belay the changes being done unfairly. -- a majority of people believe the changes being done are unfairly. mark: ed miliband management of the economy must be the big elephant when it comes to the labour party. have they overcome slightly? joe: not really. the election is simply trust

between chaos and competencies. competencies other conservative regime a chaos of that labour brought about last time. there are say ed miliband is something people do not thing is charismatic as some people do nothing in statements like or prime ministerial and not to the person you want a leading this country over the next five years. mark: let's speculate, a labour minority seems to be the best possible gas oven outcome. do you think that is the case? joe: it is difficult. labour could have fewer seats compared to conservatives and be in a better place to form a government because of they could go into some sort of arrangement. the snp and maybe the liberal democrats. there been historical bedfellows. we do not know how it will play out. david cameron with 290 sees a

bond with the liberal democrats, he could get 315 310. he could front it out and say no. i get first refusal constitution. i am going to stay because i have a formal coalition and ed miliband has said he will not going to form a coalition under any deal with snp. david cameron could say i have more seat and i have the right to say -- to stay. i am not going to go with the snp. if you do not like it, you can get somebody to be to me. mark: and maybe a confidence vote.

joe: people think that's the person with the most seats gets the. he could be out of a job. ride joel twyman. state-owned for more on the election of bloomberg politics. -- mark: joe twyman. stay tuned for more on elections on bloomberg politics. german automaker volkswagen holds the shareholders meeting tomorrow in berlin, the first in more than a decade that it will not be overseen by the former chairman who resigned on april 25 following a power struggle. an agreement in principle to buy a stake in the football club from former prime minister silvio berlusconi.

it will remain in the hands of berlusconi. mcdonald's will unveil a turnaround plan because of a decline of a drop in u.s. same-store sales. the biggest decline since 2000. speculation about menu changes. mcdonald's faces competitions from higher and alternatives like chipotle. what would you change on the mcdonald's menu> ? tweet me. you can find me @markbarton. greece is hopeful for a deal in may. for the latest, striking a deal. silvio berlusconi close to striking a deal with ac milan. an exclusive in-depth a look of

the dictator. ♪

mark: welcome back to "the pulse ." streaming on bloomberg.com and your tablet and fawn. fiscal news is tightening on the greeks. it was like the country's government and creditors are far

apartment -- of part with imf payments do this we pretty let's bring in our team of reporters. nikos joins us and joe haden. is there any progress? are we closer to a deal or not? nikos: credit institutions are reporting some [indiscernible] over the past few days but differences persist in areas such as labor market and fiscal projection for this year and we are still far from an agreement for an agreement on the disbursement of the next bill out. -- bill out. a breakthrough for yesterday. they missed it. there said they expect

significant progress by wednesday. it is a long shot. chances are they will miss yet another deadline. mark: what are the main sticking points andes top -- in these talks? guest: the labor market reform and pension reform. two things they your role said need to be part of the package into any agreement where greece have called these red lines. they are negotiating and rough to see how much wiggle room they have but another problem is they are talking about an interim deal and the eurogroup is push for a comprehensive deal before the release any more bailout funds. we have to see if they can agree on what kind of agreement they are going for at this stage for mark: what is the next deadline in these negotiations? jones hayden: from the eurogroup point of view, the finance

ministers meet on may 11 and they want to have something concrete. the reform proposals that greece has promised and evie yet to deliver. they have come up with a broad proposals for the eurogroup said to them back and they are waiting for all of the details. the detailed reforms as they need in order to come to a comprehensive deal which is what they say they want. mark: does greece have enough to pay imf this week and next week? nikos chrysoloras: greek officials are saying they would be ok with a payment due to the imf this week about 200 million euros. a greek labor minister said today -- that of the country has enough money to make another payment next year which is 700 70 million euros. the liquidity situation is so tight. for example, a small revenue

target in greece may realize it does not have enough cash for debt servicing payment just a few days before it has to meet the payment. the situation cannot go on forever. uncertainty also ways over the liquidity situation of greek banks and deposit withdrawals excel abraded again last -- accelerated again last week. the clock is ticking for greece and the country should strike a deal sooner rather than later. mark: thank you to nikos chrysoloras and jones hayden in brussels. coming up, a manufacturing miss for china. what policymakers could do next to support growth. ♪

mark: welcome back to "the pulse ." streaming on your tablet and phone. a quick check of the euro. we have manufacturing data earlier. individual country basis. the euro. what a run for the year on against the dollar. a few weeks ago investors were talking about parenting yes, it is lower today. a long way above its low of 103.

111.43 today against the dollar. our attention to asia. we have manufacturing data out of china and it was a miss. trailing estimates. i'll makers could step up stimulus to support growth. chief economic correspondent joins us for more with more. enda, what is the missed signal? enda: another softer rating on china's economy and second largest economy is slowing down. with had industrial output and we know about the real estate sector is slowing down and the factory gauge is slower than people ask active. taken on together, china is

having a slow start to the year. mark: what does it made when it comes to the pboc and central-bank? will it take more steps to boost liquidity? what are its options? enda curran: a few options on the table. chinese authorities will have to do more to boost growth and make sure there is enough liquidity in the system. the pboc have increase interest rates twice in the past month. which means banks lend more into the economy and other options. to encourage more lending through the bank toward the government which is keeping the company. it will lead to something more likely of an interest rate push. they need to cut rates because they are quite high compared to the rest of the world. mark: what about the 7% target?

can they be realistically met or not? enda curran: it is surely getting harder to achieve with the readings as this. the government set a target of about 7%. the imf expects growth below 7%. some are even more there were sprint of have options. they can cut to raise. -- some are even more bullish. they have options. they can cut rates. they can keep the economy over the target. mark: thank you to enda curran for joining us. striking a deal. tahi invest -- thai investors said he reached a deal with berlusconi for a stake in the football club. stay with us. ♪

mark: welcome back to "the pulse." i am mark barton. isis supporters have thwarted what is a claim for an attack in texas. according to the director police shot and killed two gunmen who drove up to a building where a cartoon ask bo was being -- expo was being held.

saudi arabia plans to allow foreigners direct access to its stock market. the capital markets authority publish the rules according to a statement on its website. david goldberg, chief executive had been the facebook chief officer has died suddenly. he was 47. the cause of death has not been disclosed. a deal has been reached for silvio berlusconi with a thai ♪ investor. he has reached a deal in principle to buy a stake of the football team. dan liefgreen joins us. we did get some confirmation that this deal is in the work. what are the details? dan: they do not give many financial details on the negotiations. what they said was the thai

investors putting together a group that would buy a minority stake. mr. berlusconi wants to keep majority control of the football team. she is owned it for several years and it has been very successful until recently. when he was active in politics, he used it to help promote his initiatives. what we will likely see is these are exclusive talks or presumably if they get a deal they will announce it fairly soon. mr. v said he has a partner which is active in european football including in spain. we do not know anything about price. we have seen a valuation last year of about $900 million. clearly it is a right time for mr. berlusconi. milan is not doing well like a

lot of italian football clubs. they do not have the sufficient cash liquidity to make the big investments needed to compete in european football right now. mark: this is not the ball a time that an asian investor has sought to buy a stake in an italian club? dan: that is right. milan's rival inter-milan, his family owned it for several years last year did a deal with an indonesian a businessman. they own 7% of intern -- inter-milan. they are hoping to cash in on the asian interest in a italian football and hope it will general -- generate more revenue. practically italy's dominating league and the daniellie family

can still generate enough investments to compete at the top right now. mark: what does berlusconi up to? is he eying other deals? dan: his primary business is media the biggest italian tv broadcaster is looking at doing to a deal with our premium pay television division. they compete with the sky. there have been indications they could the about doing a deal finding a partner perhaps with sky in that premium business. that been talking to vivendi. lots of things cooking in mr. berlusconi's media world. he has investments in financial services. he is preparing the groundwork for the future of his business

pretty he named his son as ceo last week. a lot of change within his empire right now. mark: dan liefgreen. back to greece, negotiations continue with the payment due in a couple of days. joining us is german europe program director daniella schwartz. thank you for joining us today. daniella: good morning. mark: we are hearing from greece they are pushing for ab interim agreement. is a palatable to the germans and interim agreement to get some sort of funding or will the european or creditors or germans want something far more concrete? daniella: the german wish is to have something as concrete as possible.

a detailed plan. an act at the same time a scenario of how they can be implemented. having a plan of how to move forward for given the times bring an agreement that needs to be found next week. all parties are about to settle which to be a much smaller agreement than intended. the priority of all parties is to avoid a scenario where greece may run into a crisis of liquidity and not be able to repay and that will cause a major disruption. mark: are you seeing any issue with payment to the imf loans is this week and next week? will agrees be able to pay up to one billion euros in debt? daniela schwartzer: i am not

close enough in any way cap knowledgeable -- to have any knowledge on that. the political statements which have highlighted the possibility of a greek default with a grexit and i am convinced that the german side and all parties will want to prevent the scenario. a solution may be found at the last minute. while greece may be able to overcome the hurdles of next week, the problem will not be solved. it will stay with us. neither before the default or grexit will be off the table. mark: talking about the possibilities of a default and not an exit. is that possible? could agree's default and still not as at the eurozone? daniela schwarzer: that would be if greece is headed toward

default and that would be the best scenario for greece and the euro area. if greece were to leave the euro area, it would question the existence of the european union. not to me it will be a disruption of the project but a reassessment. market participants once a they have seen it exited would look at every next crisis. in my view, if we were heading for situation where a political and what we would have a price scenario where markets would pressure of the remaining countries. a substantial deepening the euro area. not just something they could

join and leave as you wish. mark: what is the mood like among the german people? we know angela merkel want to bind the eurozone and hold it together in keep greece with the eurozone. what about the people in self? do germans care if greece stays or goes? daniela schwarzer: there's something new and the german political scene, a right-wing party that argues for a more moderate union including led to greece goal. there is a party people can vote for. they have gained 10% or 12%. this is an issue that matters to german. the opinion polls show first of all of majority of germans at think the euro as such is a good idea and support is still high. mark: they ecb seems to hold all

of the aces because it is providing emergency liquidity to greek banks. and their speculation it could tighten on a emergency lending as some as this wednesday. do you really foresee the ecb playing such a move way it could tip greek banks over the edge and lead to scenario where a does exit the euro? daniela schwarzer: that is well described the scenario and maybe a grexit to enlarge a degree at the hands of the european central bank. the decision to be made in that institution in on the one hand, it wants to maintain the euro area with all member states because of the downside risk of letting anyone country would intel. on the other hand, meaning that

it loses up conditions of lending to the banks and loses credibility's here, it becomes a political problem in a country like germany where the role of the bank is being seen with caution. i cannot judge what is going on in mario draghi's mind but the stakes are high a it is a key player. mark: good to chat with you today. daniela schwarzer thank you for joining us. coming up -- he has been called europe's last dictator. an exclusive interview with alexander petra schenkel. ♪

mark: welcome back to "the pulse ." president alexander lukashenko europe's longest-serving leader is often called the last remaining dictator. his 21st on the year running though former soviet republic of belarus a he is preparing for election that will see him in power for another five years. how the situation in ukraine is affecting him and his country.

reporter: a country ruled by one man for 21 years. >> another victory for alexander lukashenko and belarus. saying it was not free and fair. reporter: and opposition that has sought to challenge and with the bloody consequences. presidential elections are months away and we are in the country of belarus to gauge of the mood. with ukraine's conflict with russia, people and politicians are anxious. what happened in ukraine has strict in president -- has directed president alexander lukashenko. ryan: we finally sit down with europe's last dictator. could belarus be the next crimea? the eastern european nation of

belarus became a country 25 years ago when the soviet union collapsed for it is wedged between the european union and a resurgent russia. for centuries it is been a frontier between the larger and more powerful neighbors. belarus is russia's closest ally today. over the last year it has become concerned about its big brother. ♪ ride ultimately, belarus is as close as you can get to russia. it is something that [indiscernible] it is hard for people to get their head around. belarus still feels like the soviet union. not much has changed in the last quarter century.

that's right and there is a monument to the founder of the kj be. -- kgb. this the headquarters of belarus. kgb. belarus never changed the name. belarus also kept some of the kgb's messages. during the last presidential election thousands demanded their leaders step down. president alexander lukashenko fought back. in the red jacket is one of the presidential candidates. as of the paul close, he was beaten, hospitalized -- as the polls closed colleagues beaten hospitalized and threw in a kbg cell. he has given up on revolution. >> when i got out of jail, i had one goal create a ukrainian

style revolution. my plans were destroyed. ryan: he is more worried about the existence of belarus that democratic reform. >> the slightest attempt to carry out something that looks like a revolution here will lead to intervention. ryan: we are on our way to interview the president all belarus. i last interviewed him for two years ago when he won his second election pretty he is now on his way to his fifth. after years of asking for an interview, we have been accepted. we are headed to his new palace. i want to ask if russia is a direct. alexander lukashenko: there are

a lot of people in russia who thinks realistically and does not see belarus as any inc. but a profits. whoever comes to us with a sword will die with a sore. -- see belarus as anything more. ryan: people are concerned and are worried about having a country. alexander lukashenko: that is cynical. we were not lose our country because of crimea. people in developers understand -- belarus understand. ryan: one thing he does not have is economics ability. the majority of exports go to russia. .this one the biggest tractor factories up in all of the soviet union. it doesn't seem like it has

changed since then. the tractor factory employees close to 20,000 people. with a sorry state of russia's economy, there is little demand for is demand. belarus would be belly up. alexander lukashenko's critics say that in that reliance is creeping other sovereign entity. russia's actions in crimea does not sit well with everybody. tim ash is professor at oxford. he gives a view. professor ash: we do not want to be part of vladimir putin's in. -- imperialism. >> ♪ ryan: patriotism is on the rise

especially among the young. they are at a concert where they are celebrating all things bela- russian. the last dictator is all but guaranteed to win an election. ryan chilcote bloomberg, minsk. mark: putting the shine back into the golden arches. mcdonald's comeback plan. that is next. ♪

mark: putting the shine back on the golden arches. that is the daunting task for mcdonald's new ceo. he was appointed chief executive in march, inheriting the worst sell slump in more than a decade. easterbrook unveils his plan to turn around the $19 billion fast food giant. it will not be easy. in the u.s., sales dropped 2%. the stuff have under performed the s&p 500. the chain has dropped a number of items to speed up service. it may require more than a menu. it may be more than a new menu. bloomberg looks at some of

mcdonald's biggest missteps. reporter: mcdonald's has a problem. people are eating less and less of their food. same-store sales in the u.s. have dropped six quarters in a row. 4 of their biggest missteps in recent months. mcdonald's has been adding lots of new items in an attempt to lure new customers. the problem is that made you is to big for its own good. the company got rid of seven underperforming sandwiches. even after that, the menu is 40 items fatter than 2007. as fast food workers in cities across the u.s. clamor for a boost in their barely minimum wages, mcdonald's has taken the brunt of the pr quagmire. in response the company has said it will raise workers' pay one dollar above local minimum wage and offer vacation benefits.

only at stores they own directly. the changes will only affect 10% of domestic stores. it is not just employees who are disgruntled but store owners, too. a recent survey found the relationship between mcdonald's and franchise owners are the worst in over a decade. opening up a mcdonald's requires an investment of $1 million or $2 million. and of course, the sales slump mean the franchise are making less money. finally, the company is missing a big opportunity in mobile. taco bell and starbucks have shown what a good mobile app can do for sales. customers ordering from taco bell rackk up bills that are higher 20% their regular orders.

mcdonald's is lacking behind but is expected to release a global app this summer. mark: the second hour of "the pulse" continues after this. stay with us. ♪

mark: three days left before the u.k. general election and speculation heats up. the new titans of greece as imf payments come. striking a deal, selling a stake in ac milan. good morning to our viewers in europe and those in asia. welcome to those just waking up in the united states.

this is "the pulse" live from bloomberg headquarters in london and its three days to go until election day in the u.k.. polls are putting labor and the conservative party that connect. nobody expects to gain a majority. talks of coalition negotiation's and you -- negotiations continue. it is the story of the weekend area guest: discounting the royal baby just when you seen it all. the question is how that will work out if they erect the monolith. mark: beyond the monolith, what happened weekend? guest: more of the same. we saw labor matching cameron to

legislate no further tax rises. we had a lot of the deepening of both parties. they were strengthening their ideological positions. mark: conservatives and later are focusing on the minor parties. or they trying to win over the minor parties rather than attacking each other. that was a slight change. guest: it is a slight shift. at the end of the day we are going to have a parliament. that is one of the things we have about selection. while both main parties are saying they will try to go it alone, your hearing echoes of talks with one or talks with the other. the democrats would the ok with

a referendum. mark: i know you are in scotland and you spoke to their candidate. he told you about the importance of keeping the u.k. united red let's take a listen to this. >> i believe that united kingdom should united. i want to keep the u.k. together. i also think that the polls are overstating. the democrats have got a great track record or serving the people of the community where we have shown that we can make a difference and get eggs done this part of the world. -- things done in this part of the world. we can't get away from that. they've been telling their own local members of they see the election as a stepping stone to independence.

a lot of people are frightened about having them shape things from the sidelines. i think many people who have not been traditional supporters want to make sure that we keep the s&p out. they want to do something that is the act opposite. they want to break up the united kingdom and that can't be right. the choice people face now is a hung parliament. the you want to keep a minority government on life-support and paralyzed? we can keep the country in the center ground and make sure we have a strong economy.

liberal democrats hold the balance of the next parliament. mark: danny alexander there. he is confident he will not use his the. he is pointing to the fact that he might lose his seat, which would be a big loss. guest: polls are suggesting there will not the a liberal democrat elected on mainland scotland after may 7. i was campaigning with any alex and her and -- danny alexander. there is a marked difference this time. it's more than just about independence. the s&p have the momentum kind them. mark: thanks a lot. do stay tuned for more on the election on bloomberg politics today. we will talk about the importance of the election with an all-star panel.

this is a special treat on this bank holiday monday. thank you for joining us. i was looking at one-week sterling volatility against the euro. it has risen above where it was at the time of the scottish referendum in temper. it is the highest level since 2010. guest: that was very interesting i think the selection is going to be fascinating. could be quite unpredictable. sterling for example, should labor and s&p win, could this the policy be positive or sterling? despite the election we were sign ecb related and that's quite hard to judge.

our approach with not need to take anything position going in or trade against the conventional wisdom. mark: you like your contrarian views. give me an apple. guest: that could be whoever wins i'm trying to be unpolitical here typically there would be a buying opportunity. these are still relatively centrist parties. that would be one example. i would be happy to come on. the other area, sterling could be quite as being either way. mark: the volatility has not been affected. it doesn't seem to be. guest: you could do a trade out and you have the opportunity to buy short.

sterling could go either way. from an investment point of view, that is not our area. key decision we have is to go with the trend or go against the trend. we like to try and go against the trend. mark: if labor get in, some industries have an targeted. the utility and banks are too. do you make that's more or against those eventualities? guest: we have. it's very hard to look at the price. these are all the dividend yields or coming back to bigger dividend yields.

there is a degree of distance in the price you might argue. there is a team that does stock specific investment on my team. the key is to be diversified. if you have too much money in that particular bucket, you risk the outcome. the economy is fine. mark: you are not worried about the uncertainty causing the home act? guest: the economy is fine. the unemployment that your is like the united states, a very good picture. the overall economy looks pretty robust. you hit the nail on the head, if there is going to be any drama one way or the other, it's going to be individual stocks.

mark: this is what else is on our radar. we have the annual shareholders meeting tomorrow. it will be the first meeting in more than a decade. it will be overseen by ferdinand pete. he reached an agreement in principle to buy state in the ac milan soccer team. they are the seven time european champion. mcdonald's will unveil the plan turnaround today in an attempt to stop a decline in u.s. sales last year. speculation about venue changes rise as mcdonald's faces competition from higher and competition like chipotle.

what would you change on the mcdonald's menu? tweet me. you know chocolate malt? i like chocolate molds. -- maltz. guest: i wonder if you could go in and get a better polity desert. maybe have a pizza. if they had quality, low price desert maybe that would get some people to pick up a cough of -- cup of coffee on the way. mark: we are going to have across to athens. striking a deal we are just

days away from the election here in the u.k.. ♪

mark: welcome back to european bloomberg headquarters. the noose is tightening on greece. it looks like the country's government and creditors are

still far apart. there are imf payments due this week. greece will post for deal -- push for deal. in brussels, we are joined by our chief. let's start with you. is there any progress on this deal? are we closer to a deal? guest: we have the situation where another deadline is indicating they felt they would get somewhere by sunday. another deadline passes and progress is made. they have not reached a deal yet. there are some interesting changes in the signals coming from the greek government. there is a scaling back of expectations. they are not talking about an overall deal in may.

they are talking about stages before then. they are not talking about preliminary deals. they are talking about recognition of progress made at the next euro meeting. when you compare it with the last eurogroup that would be something. they are focusing on what the greek government hopes would be some loosening of constraints. of course, the sides to remain apart on issues of substance. the tone is improved. there are big issues and they can agree on them. mark: what are these main sticking points in the talks right now? guest: greece has said that the red lines are discussions of pensions and labor market reform. these are two things that the eurogroup has been pushing for from the start. i can understand if we are not

making any progress in that department. it is true it seems that the tone of the negotiation has improved. the eurogroup is looking for something concrete to be on the table next monday when they meet again and we still have to see if that's going to happen. mark: what is the next deadline in these negotiations? guest: for the people in brussels it's may 11. that is when they expect something from the greeks. they are not going to release any more bailout funding until then. it seems like greece will be able to pay its bills until then. the cash crunch is getting tighter and tighter. mark: finally, it you think greece has enough cash to pay the imf this week at it next week? guest: the singles we are

hearing as that they have enough cash to pay the imf this week. next week is a single -- bigger redemption. the government is expressing confidence that that can be met as well. they are running on fumes. it is a tougher one of the 200 million it this week. we will see. mark: thanks a lot. default and exit or default and no exit? the probability of those permutations? guest: exit is very small. the great people don't want. the u.s. does not want it. germany does not want it. exit means it no longer becomes

a peg a disaster for the rest and it can be broken. what this default mean? people talk about the fault is if there are lots of bonds you can default on. the bonds are tiny. they are tiny. you're talking about imf you can't default the imf. you are talking about loans to germany, france, etc.. there is no need. those loans are very long and low interest-rate. we can see a deal based on three things. extended the maturity. extend them further to 50 years. if you have a big debt, you would be more relaxed. it is very low. we think that increases more sustainable than people think it the interest rate is very low.

there is no reason why germany needs to make money on the interest of greece. i think the news reporters are alluding to is the bit of difficulty is they wanted decent primary budget set up either by the pensions or rate reforms. come up with a plan. the surface targets are too tough. bring them down. find a solution. the eu has gone easy on france for several years. why not use back bit on greece. that is most likely scenario. from a bondholder point of view we own portugal which is correlated, there is a danger that the burn the bond -- if you

like germany being burned, that is a mathematical fault. when it do the same to those bondholders? it would not make much sense. greece will have access, but as we know in these heated discussions things that make sense don't happen. we actually think the probability of exit is very low. it becomes a peg. mark: we're going to talk about the european bond market inequities next. we are back in two. ♪

mark: welcome back to "the pulse." allen higgins is here. you are modest bullish, what's the difference between those two? guest: what it means is simply we are talking about balance funds earlier. they are 50% equities. we were at 62%. 4s, that's super bullish. we cut that down to 56 or 57%. you still pay to be in equities. there is less value than there was.

it has week effects. most people get it wrong because they look for negative returns. you are looking for underperformance. it is very corny but it does have weak physical effects. mark: what was going on? guest: good question. there is over one million in portuguese debt. i think we may have got too far ahead. we like the portugal story, the fundamental story and the stream of income. mark: portugal was way ahead of

the rest, but it has narrowed its lead. is that donna now? guest: we can see it outperforming. this particular qe is different than what we had in the u.s. and the u.k. when we had qe in the u.k., we had huge deficits. there were plenty of bonds around. i think you're going to see asset allocation. they will be cutting down on bonds in favor of other income streams like real estate. that is going to cap the expensive french and german bonds. those types of funds, 2% for 10 years from portugal will outperform cash. cash is going nowhere. mark: thanks for coming in on

this bank holiday. we will be live from milan. you can follow me on twitter. you can follow allen on twitter as well. there i am. ♪

mark: welcome back to "the pulse." we're live from european headquarters in london. here are the top headlines. isis has forward a claim from an attack in texas. the claim comes after police shot and killed two gunmen who drove up to a building where a mohammed cartoon exhibition was happening. police suspected the car may have contained a bomb.

saudi arabia plans to allow foreigners direct access. they will publish the rules today. david goldberg has died suddenly. he was 47. the cause of death has not been disclosed. let's check in on the markets. jonathan: what an ugly week last week. this morning, a little bit of a bounce back. we have gains of over half of 1%. right here in london, it puts you at 100, closed for bank holiday. one stock is really charging. that is on the map and i will bring it to you. this was equity market, here is that one stock. it is up by around 8% this morning.

that follows some reports that monsanto could be talking to them about a takeover. following the rough ride we had last week, right here for german bonds. good yields. they stayed flat. that is the yield on the german 10 year. last month, and ugly month for eurozone bonds. if you look at the bloomberg debt index for europe, the moves in the bond market have been quite phenomenal. the traces phenomenal over the last two weeks. i am looking at the aussie dollar. china p.m. and i -- china pmi throw in the prospect of another cut in the rda. this is the fourth day of aussie weakness. mark: the entire -- he has

reached an agreement to buy a stake in the football team. the malan bureau chief joins us. you have had weeks and weeks that he was selling the team. we got confirmation yesterday that a deal is in the works. guest: we don't have very many financial details yet. as you said, there is speculation that he has been considering at least a partial sale of his team for several months. what he said was he is in exclusive talks. he is representing other investors. this includes a u.k. private equity company which specializes in sports investments.

they have investments in spanish football clubs. we don't have any real detail on valuation or the size of the state other than the fact that he said he wants to keep majority control of the team. going forward the next few weeks, we should get some more details. press reports say he is being courted by other investors from china possibly who also are interested in the team. guest: this is the first time that an asian investor would buy a stake in an italian club. guest: that's right. a 70% stake was purchased by an indonesian businessman last year.

the premise is that these investors do have the financial resources necessary going forward. they are betting on interest in asia to boost fan interest and boost revenue in these teams. neither of the malan teams are doing very well. neither of them are likely to be in the european cup competition next year. mr. barris coney just cannot keep pace with the size of the financial investments needed going forward to make acquisitions of top players. mark: outside of the sports industry, i gather that he is eyeing some other deals? guest: he has a lot going on in his business empire. his family owns a media that is the foundation of his empire.

it is the private broadcaster. they are considering doing a deal with a pay-tv offering possibly with mr. murdoch's sky. they are thinking about broadening their content package. he named his oldest son as the ceo of media set. he is setting up his game plan going forward for his business interests. mark: thanks a lot. it good to attach -- check you. -- chat with you. she's got the details. good morning. what are we expecting from this meeting? guest: we are expecting the first shareholder meeting in decades where he will not be

there. he will not be running the meeting. a union official will run the meeting. there will be two nieces sitting on the board to replace him and his wife. we will see if he is not there. he may send someone to ask questions on his behalf. mark: he has written letters. he has an opposition to the board of the apartment of his nieces. what is the significance of this? guest: he has argued that his nieces do not have the experience necessary to cinema board. the ultimate significance will have to see how it plays out. he does not have the ability to block these appointments. i think this is him showing that

he doesn't support it and he is trying to maintain some influence despite not being the chairman anymore. the appointments of these two family members probably means the next chairman will be an insider. it will not be someone from the outside. mark: thanks for joining us. she is in berlin today ahead of the vw annual meeting tomorrow. still to come the election is our top story. it happens in three days. we will discuss that. ♪ ♪

mark: welcome back. i am mark barton. comcast reports earnings before markets in the u.s. today. they will be listening on options and a return plan to take over time warner cable. that fell through last month. israeli said they found no evidence and movements of the dollar. the currency rose or fell ahead

of the free monetary announcement this year. the next rda is tomorrow. the conference will feature david einhorn and bill ackman. let's get you of the top stories. we are three days away from the u.k. election and the results could change britain's relationship with europe. joining us now is a policy analyst. a very good morning to you. you say there will be -- it will be of defining election in relation to the eu. one but assume that of labor prevails labor being

anti-referendum, it is the status quote. let's look at the labor scenario first. what happens if labor cobbles together some sort of government? guest: there would not be any referendum in 2017. this is not likely in the next parliament. in the sense of the policy, they are similar to the conservatives. they would try to limit the impact to welfare. they would be for expanding the single market. in terms of the substance, a lot of the policies are very similar. they would not want to bring it to ahead by having a referendum.

mark: how are the conservatives progressing before the election on the reforms that cameron has pursued ahead of this referendum? we have seen progress being made. we don't hear about it on a day-to-day basis. is that true or not? guest: we have had the foreign secretary turning europe. he has visited every capital to explain the u.k. reform agenda, which is often misrepresented in the media. they are hoping that they have a platform so if they are in office, they have something to build on. for love these reforms, regardless of who is going to be in government, the u.k. is going to perform the eu budget.

they are going to try to address public fears about immigration. a lot of these reforms enjoy support. mark: is it true that a referendum could take place today on what's being achieved behind the scenes? guest: no. there is substantial reform that needs to take place. on this issue of the eurozone if in the next few years we are going to see political deterioration in the eurozone, we need to safeguard the position and put in place safeguards to prevent the eurozone from dominating the market. that makes it detrimental to their interests.

that is one thing that would need to happen. the immigration thing, that would still be quite tough to get them. a lot of the memory -- member states not keen on this proposal about a four-year program. there is quite a lot to be done. mark: you are in favor of a referendum? guest: we think there is enough public appetite for a vote and it makes sense to have it. it reinforces the credibility of the reforms. if the government says this is what we are going to negotiate we will give you a say in whether to accept this or not. the public will look at this as more credible. they are not giving the public a say, for a lot of people that

will make them more cynical and question the credibility of the reform. mark: how does the s&p play into all of this. guest: this is a very interesting issue. the question of how the europe issue and are plays with the scottish issue. they have said they will not be another referendum. the u.k. leaving the eu could give them that opening. they have said that if there is a referendum, they want every constituent nation to vote out for the u.k. to leave. if we were to have a situation in which the u.k. voted to leave but scotland voted to stay in

it, you could see how they could argue that they should have independence. mark: how would you react to the news that they are considering regulation and taxes. there was uncertainty around the referendum. guest: i think we look to the statements and regulation and taxation regulations were the most vital. there is a lot of uncertainty. you have to ask is that going to go away of we don't have a referendum? we would argue that not having a referendum you are building up longer-term risk. we would say under a conservative government, there is a more immediate risk.

in the longer term, that risk will increase if you don't have a referendum. mark: is there any with the labour party if they win could be forced into having a referendum in future years? the ucs scenario in which that could happen? -- do you see a scenario in which that can happen? guest: even if labor runs the government the conservatives will still try to pass the referendum bill. like they did in the current parliament. we don't know the exact arithmetic. it's possible that that might get a parliamentary majority. if they have to vote down a referendum, they did not do that in the current parliament. they actually abstained rather

than be seen as putting it down. mark: thank you for joining us. please join us after the election as well. just before the break, we are going to get some pictures of an italian coast guard ship docking with migrants on board. they rescued almost 6000 migrants from 16 boats. stay with us on "the pulse." ♪

mark: i just got some breaking news from greece. greece does want agreement on issues where there is common ground. greece is pushing for an interim solution and predecessors want something meteor. there are red lines in the sand. that is not a big surprise. greece does one agreement on issues where they have common ground. theorist a lot of issues where there is not common ground in that is the problem. jonathan: they were hoping for a preliminary deal the weekend. the self-imposed deadlines i

think everybody is sick and tired of the deadlines. the repayment deadlines are the hard -- deadlines. you're going to find harder to make those payments. mark: that is almost a billion. mcdonald's. jonathan: i think this is really interesting. what you going to a deep -- due to reach. consumers have changed their habits. this is set up to deliver fast food and i'm not sure that people want that the same way they did. mark: it was her twitter question of the day. what would you do to change things at mcdonald's? this is funny. that was the funniest one.

jonathan: i went to italy 10 years ago and they had perrone on tap at mcdonald's. mark: in the states all of the drinks are free. it wasn't like that. jonathan: it was on tap. i think you have a different set of clientele. mark: elliott, we are waiting for the is -- saudi foreign investor rules to be released. guest: we have an inkling of some of the rules. the minimum of five years experience and $5 billion. they may cut foreign investment

and individual stocks. it's not really doing huge map. -- amount. they are open up to foreign investors on june 15. that could add 40 billion dollars worth of investment. that is why they stock market is doing so well despite oil prices being that much lower than they were last year. mark: final word on the decline of your football team. is selling a good idea? jonathan: probably not. it depends on how much money this guy has. we need some serious cash. in terms of the quality of the club, way ahead. mark: i can't complain. thanks a lot. that's it.

your health -- "surveillance" is up next. i will be back on cap down tomorrow. have a good day. ♪

announcer: this is "bloomberg surveillance." tom: greece confronts wednesday and in ecb governing council that wants compromise. we will call it brinksmanship monday again, a fragmented

britain confronting an election. olivia stearns is running for president. today ms. three arena and dr. carson. good morning, everyone. this is "bloomberg surveillance ." it is monday, may 4. i'm tom keene. joining me, the contender olivia stearns. we have comcast writing right now. the headlines rolling out. this is after the collapse merger -- the collapsed merger. i was so disappointed. i wanted to talk about how i was going to win the gop ticket. earnings-per-share coming in at seven and cents, and we can expect to see strengths out of the broadcast business out of the film business, out of the themepark business.